The Sensex fell 495 points to settle at 38,645
The Sensex fell 495 points to settle at 38,645

Sensex, Nifty have worst day of year on rising oil prices: 10 things to know

  • Nifty gave up 11,600 as oil prices surged on reports that the US is set to end Iran sanctions waivers
  • Oil marketers also took a hit from higher crude prices

Indian stock markets fell sharply today, spooked by rising oil prices, while losses in financials also weighed. Oil prices shot up by about 3% to a nearly 6-month high of $74.31 a barrel, as reports, citing sources, said that Trump administration is planning not to renew waivers that let countries buy Iranian oil without facing US sanctions, a move that could hit major importers such as China and India. The Sensex fell nearly 500 points to 38,645 while Nifty ended below 11,600, at 11,594, down 1.35%. Both indexes saw their worst session since December 21. Broader markets also saw a selloff, with BSE midcap and smallcap stocks falling nearly 1.5%.

"Broad-based consolidation was witnessed today as investors were on a profit-booking mood given weak global cues," said Vinod Nair, head of research at Geojit Financial Services.

Here are 10 things to know about today's trade

1) The Indian rupee also fell to a one-month low of 69.88 against the US dollar in wake of surging oil prices, before paring some losses.

2) India and China are Iran's biggest oil customers. The current set of waivers - issued to India, China and some other countries - expire on May 2.

3) India is also the world's third-biggest oil importer and elevated crude prices could widen the country’s current-account deficit and stoke inflationary pressures.

4) “Indian markets had a rough day today, on the back of sharp rise in crude oil price above $74 per barrel. As a significant importer of crude oil, the high oil price is not good for Indian macros. Further, after breath-taking rally of past two months, a correction was due in the Indian markets and crude oil has triggered it," said Jagannadham Thunuguntla, senior VP and head of research (Wealth) at Centrum Broking.

5) "Further, ongoing results season has provided mixed performance till date. For the markets to sustain at elevated levels, it’s very important for Indian corporate earnings to remain robust," he added.

6) Oil-to-retail conglomerate Reliance Industries fell 3%, after it reported a weak quarter for its refining and petrochemical business.

7) A fall in financial stocks also hurt the Sensex. The Nifty Bank index fell 1.8%. Among banking stocks, Yes Bank slumped 7%, IndusInd Bank 4.3%, PNB 4%, Bank of Baroda 2.6%, ICICI Bank 2.4% and Axis Bank 2%.

8) Oil marketers took a hit from higher crude prices. Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd fell between 4% and 6%.

9) Jet Airways Ltd, which suspended all operations last week, fell for a third straight session, plunging 6% today.

10) Jayant Manglik, president of Religare Broking, said that on downside, 11,550 could act as support for Nifty. The third phase of Lok Sabha elections, scheduled to be held tomorrow, will be also be on investors' radar.

22 Apr 2019, 12:05:41 PM IST

TCS, Infosys gain as rupee falls sharply

Shares of select IT stocks like TCS and Infosys rose today as the rupee fell to a one-month low against US dollar. TCS was up around 1% while Infosys rose 0.40%, lifting the Nifty IT by 0.41% in noon trade.

22 Apr 2019, 10:42:56 AM IST

RIL shares off day's lows after falling 3%

Shares in RIL today fell as much as Reliance Industries Ltd fall as much as 3% to 1,345 on BSE. The energy-to-retail-to-telecom conglomerate posted record quarterly profit on Thursday boosted by its retail and telecom business, but its core operations of petrochemical and refining reported weak results. However, RIL shares pared losses and were down about 1.5% at 10:42 am on BSE.

22 Apr 2019, 09:43:57 AM IST

Rupee slides, bond yields harden as oil prices surge

The Indian rupee weakened to six-week low against US dollar as rising crude prices stoked inflationary and fiscal slippage concerns. The rupee was trading at 69.83 a dollar, down from its previous close of 69.36. Bond yields also hardened on inflationary and fiscal slippage concerns. Oil prices spiked on report that the US is likely to ask all importers of Iranian oil to end their purchases or face sanctions.

22 Apr 2019, 09:19:00 AM IST

SpiceJet announces codeshare agreement with Emirates, shares edge higher

SpiceJet and Emirates have signed a Memorandum of Understanding (MoU) to enter into a reciprocal codeshare agreement, which is set to open new routes and destinations for passengers travelling between India and popular destinations across America, Europe, Africa and the Middle East, the Indian carrier said in a communication to the BSE. SpiceJet passengers travelling from Delhi, Mumbai, Ahmedabad, Kochi, Amritsar, Jaipur, Pune, Mangalore, Madurai, Kozhikode and 41 other domestic destinations that the airline operates to, will be able to access Emirates’ network under the codeshare agreement across the globe. SpiceJet shares were up 1% to 137.50 in early trade.

22 Apr 2019, 09:20:18 AM IST

Asia stocks mixed, oil prices surge

Asian shares were steady today as investors took stock of recent data suggesting global growth may be stabilising, while oil prices spiked on a report the US is likely to ask all importers of Iranian oil to end their purchases or face sanctions. Brent futures rallied to a five-month high, after the Washington Post said U.S. Secretary of State Mike Pompeo will announce "that as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate." The potential disruption to Iranian supplies are expected to add to an already tight oil market.